APA always and Reference

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday, and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Key Assignment Final Draft

Group Portion (Key Assignment Draft with revisions)

Your final Key Assignment should include any revisions or recommendations that were made by the instructor on your Key Assignment Draft.

Over the past year, it has been determined that there may be some control issues in each of the major transaction cycles. The following is a chart of each cycle with the areas of concern identified.

Each member of your team should take 1 of the 4 specific transaction cycles and complete the following:

• Determine the appropriate methodology for designing tests of controls and substantive tests of transactions.

Submit a 1-page chart with the following column headings:

In preparation for the year-end audit at Bovar Company, your team will create a presentation to management for its approval. Complete the following:

• Each member should present the methodology that he or she developed for his or her transaction cycle to the group, which should address the aforementioned control issues.
• The team should agree on how to address the identified control issues.
• The team should provide outlines regarding the methodology for each of the 4 major transaction cycles for the following:
  • Designing tests of controls
  • Designing substantive tests of transactions

Individual Portion

Part 1

During the audit, the following occurred:

Bovar Company’s management restricted the auditors by not allowing them to audit Overall Manufacturing Company's financial statements. Management changed the inventory accounting from first in, first out (FIFO) to last in, first out (LIFO) and did not accurately revalue the inventory. The lead auditor was the cousin of Bovar Company’s chief financial officer (CFO).

The American Institute of Certified Public Accountants (AICPA) professional standards provide uniform wording and format for the audit report. Consider the above events and write a 1-page audit report for Harrison that includes all 7 parts of a standard audit report, as follows:

• Report title
• Audit report address
• Introductory paragraphs
• Scope paragraph
• Opinion paragraph
• Name of the Certified Public Accountant (CPA) firm
• Audit report date

Part 2

At the end of the audit, the audit team completed the fieldwork and signed the auditor report on March 20, 2014. Harrison sold some of assets in the rectangular heat exchangers line on March 31, 2014. The team is concerned about this event transaction occurring after December 31, 2013 that may affect the 2013 financial statements. Discuss the following questions in a 1-page document:

• What general types of subsequent events require consideration and evaluation by the management and the audit team?
• Describe the financial statement effect of the subsequent event that is described above.

Please submit your assignment in the small group Discussion Board area.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Course Materials